Introduction about Managerial Accounting

Definition: aims to provide internal managers with financial and non-financial

information necessary to make informed business decisions.
Scope: Unlike financial accounting, which focuses on providing financial statements
to external stakeholders, management accounting is designed to meet the needs of
internal decision-makers

Building Blocks Of Management Accounting

1. Cost accounting:
- Cost behavior: Fixed, Variable, Mixed
- Basic costing methods (absorption, marginal)
2. Planning:
- Budgeting
- Forecasting

2. Control and performance evaluation:

•KPI
•Balance scorecard
4. Strategic Decision making
•Break-Even Analysis
•Investment appraisal
•Cost-Volume-Profit Analysis
•Capital budgeting basics (NPV, IRR) for long-term investment decisions

The Role of Technology

1. Enhanced Forecasting
E.g: Walmart
2. Decision Making
E.g: Netflix's Content Investment Strategy
3. Cost Reduction

E.g:UPS's ORION Project

4. Revenue Optimization
E.g: Airbnb's Dynamic Pricing Model

Career Path

What Requires From You? Becoming A Trusted Business Partner

1. LEADERSHIP

Trusted advisor
Integral to the business team
Role-model for finance
Close to business
Build strong relationship
Influence decision

2. ENGAGEMENT